Did Improved Earnings and Lower Core Equity Fund Fees Just Shift Franklin Resources' (BEN) Investment Narrative?

• Franklin Resources recently announced fourth quarter and full-year results for the period ended September 30, 2025, highlighting year-over-year increases in sales, revenue, and a return to net profitability.
• An important detail is that Franklin Templeton Canada also revealed upcoming lower fees and enhanced access across its Core Equity Funds, potentially positioning these products more competitively within the market.
• We'll now consider how Franklin Resources' improved earnings growth and return to profitability shape its revised investment narrative.

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Franklin Resources Investment Narrative Recap

To own Franklin Resources, investors need to believe the company can not only defend but grow its global asset base and overcome persistent industry-wide fee pressure. The company’s return to profitability and higher revenue in the latest quarter is a positive signal, but ongoing net outflows at Western Asset Management remain an immediate risk that could continue to weigh on overall earnings. The improved financials help near-term confidence, but unless asset retention stabilizes, this may not be a material catalyst for the stock.

Of the most recent developments, Franklin Templeton Canada’s move to lower fees and expand access to its Core Equity Funds is particularly relevant, given ongoing fee compression across the industry. By aligning its pricing more closely with peers, the firm may enhance its competitive position, but pressure on net margins is likely to persist unless offset by meaningful AUM growth or product mix shifts.

However, despite solid results, investors should be aware that persistent reputational and operational challenges related to ongoing net outflows at key subsidiaries...

Read the full narrative on Franklin Resources (it's free!)

Franklin Resources is projected to achieve $8.9 billion in revenue and $1.4 billion in earnings by 2028. This outlook is based on a forecast annual revenue growth rate of 1.0% and an earnings increase of approximately $1.13 billion from current earnings of $270.9 million.

Uncover how Franklin Resources' forecasts yield a $25.45 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three members of the Simply Wall St Community range from US$23.40 to US$29.90, revealing diverse expectations for where Franklin’s shares could be headed. Yet, with persistent net outflows at Western Asset Management still raising concerns, you can explore several alternative opinions about future performance.

Explore 3 other fair value estimates on Franklin Resources - why the stock might be worth as much as 34% more than the current price!

Build Your Own Franklin Resources Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Franklin Resources research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Franklin Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Franklin Resources' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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